The First Trade… All action, no traction

Proper context can start the day with a solid win and make all the difference.

CHARTROOM LINK
(pre-open Market Tour begins at 8:55 ET)

Through the prior close…
Not gapping up Wednesday prevented trending up immediately. But it didn’t default to a sell-off. Choppy trading did poke lower intraday, but didn’t extend down, while waiting for the afternoon’s bias environment to lapse. The balance of the session trended up to touch the 1984.75 overnight high’s “new Globex trend extreme” before the close.

Overnight action’s new info…
Initially pulling back to 1978.50 was recovered to higher and higher highs that eventually attacked 1988.00. Its reaction back down to 1978.50 had largely recovered before reacting down again under yesterday’s 1984.50 cash session close. Meanwhile, continually overlapping yesterday’s session has avoided creating another “new Globex trend extreme” which would have required intraday retest.

If, then…
Overnight choppiness around yesterday’s highs is another sign of waning upside momentum. Whether that’s potentially bearish, or even eventually bearish, it’s not necessarily immediately bearish. Beginning yesterday’s session with a similar challenge only delayed its later improvement. Today’s version of that challenge could still probe higher, perhaps earlier and only temporarily.

First Trade…
Exiting the open at 9:45 above 1987.25 would be likely to trigger the 1986.00 bias-up signal at 10:15. Exiting the open under 1979.75 would be unlikely to trigger bias-up.